Diabetic complication are indicated to occur...

Intracellularly

What does aldose redutase do?

If glucose levels are too high in the eye what forms?

Sorbitol using NADPH

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Why would oxidative stress occur if there is excess glucose?

NADPH is wasted converted glucose to sorbitol so there is less to re-reduce glutathione, a critical antioxidant. The build up of sorbitol causes osmotic swelling (in the eye for example) because it is trapped in cells.